DIRECTORS REPORT. (0.01) Balance carried to Balance Sheet (4.37) (3.17)

Transcription

1 DIRECTORS REPORT Dear Shareholders, We are pleased to present the 12 th Annual Report, along with the audited annual accounts of your Company for the financial year ended 31 st March, Financial Performance Summary The highlights of the financial results of the Company are as follows: (Rs. in Crore) Year ended Year ended Income from Operations Other Income Total Income Profit before Interest, Depreciation and Taxation (0.98) (2.91) Less : Interest Profit before Depreciation and Taxation (0.98) (3.19) Less : Depreciation Profit/(Loss) before Taxation (1.18) (3.53) Less : Provision for tax including deferred tax Profit/(Loss) after Tax (1.18) (3.53) Profit/Loss brought forward from previous year (3.18) 0.36 Less: Depreciation written off as per Schedule II (0.01) Balance carried to Balance Sheet (4.37) (3.17) 2. Business Performance During the year under review, the yield on Commodity business has been on a decline due to lesser participation of the clients, the National Spot Exchange fiasco and levy of Commodities Transaction Tax on nonagricultural commodities. Delay in introduction of trading in commodities options has also taken a toll in the commodities business. As and when approved, the commodities market will stand to benefit from increased depth and wider participation. During the year under review the Company achieved a total income of Rs.7.75 Crore compared to Rs Crore during previous year. The Net Loss during the year has been lower at Rs.1.18 Crore as compared to a Net Loss of Rs.3.53 Crore in the previous year.

2 Commodity Derivative market share in retail segment improved from 0.54% in March, 2014 to 0.64 % in March, Reserves During the year, no amount is proposed to be transferred to Reserves in view of the losses during the year. 4. Dividend In view of losses, your Directors do not recommend any dividend for the year under review. 5. Share Capital During the year, the Company increased the Authorised Share Capital from Rs.5 Crore to Rs.7 Crore. The Company allotted 2,50,000 Equity Shares of Rs.10/ each to Aditya Birla Money Limited, its holding company. The Issued, Subscribed and Paid up Capital stood at Rs.5.25 Crore as on March 31, 2015 consisting of 5,250,000 Equity shares of Rs.10/ each. 6. Corporate Governance Your Directors reaffirm their commitment to the corporate governance standards to the extent they are applicable to the Company. 7. Board Meetings The Board of Directors of the Company met 4 (four) times during the year i.e. on April 29, 2014, July 28, 2014, November 5, 2014 and January 28, Subsidiaries Your Company does not have any subsidiary. 9. Public Deposits During the year, your Company has not accepted or renewed any deposit from the public as covered under Section 73 of the Act read with the Companies (Acceptance of Deposits) Rules, Significant and Material Orders passed by the Regulators or Courts During the year, no significant and material orders were passed by the regulators or courts or tribunals impacting the going concern status of the Company. 11. Adequacy of Internal Financial Statements The Company has in place adequate financial controls to ensure the orderly and efficient conduct of its business.

3 12. Particulars of Loans, Guarantees or Investments The Company has not granted any loans, guarantees or has made any investments as prescribed under the provisions of Section 186 of the Companies Act, Risk Management Policy The Company has a robust Risk Management Policy in place which includes identifying the elements of risk in the opinion of the Board that may threaten the existence of the company. 14. Corporate Social Responsibility The provisions of Corporate Social Responsibility are not applicable to the Company for the financial year as the criteria mentioned under Section 135 of the Companies Act, 2013 are not fulfilled. 15. Related Party Transactions All Related Party Transactions ( RPT ) entered into during the financial year were on an arm s length basis and in the ordinary course of business. There are no materially significant Related Party Transactions made by the Company with Promoters, Directors, Related Parties or other designated persons which may have a potential conflict with the interest of the Company at large. The Board has formulated a Related Party Transactions Policy for the purpose of identification and monitoring of such transactions. Particulars of contracts or arrangements made with related parties referred to in Section 188(1) of the Companies Act, 2013, in the prescribed form AOC2 is appended as Annexure to the Board s report. 16. Formal Annual Evaluation Meeting of the Independent Directors The Independent Director of the Company reviewed the performance of the non Independent Directors, the Board as a whole, Chairman of the Board and the Committees of the Board. Meeting of the Board of Directors other than Independent Director During the year, the Board of Directors of the Company other than the Independent Directors met on March 30, 2015 to evaluate the performance of the Independent Director, Chairman of the Board, the Board as a whole and the Committees of the Board.

4 On the basis of the performance evaluation undertaken, the Board is of the view that the contribution of the Independent Director to the Board is remarkable and therefore the term of appointment of the Independent Director shall continue. 17. Cost Audit The provisions of Cost audit as prescribed under Section 148 of the Companies Act, 2013 are not applicable to the Company. 18. Nomination and Remuneration Committee The provisions of Section 178 of the Companies Act, 2013 with regard to Nomination and Remuneration Committee are not applicable to the Company. 19. Managerial Remuneration The Company does not have an Executive Director / a Manager, therefore the requirement of managerial remuneration does not arise. 20. Conservation of Energy, Technology Absorption and Foreign Exchange Earnings and Outgo The information relating to the Conservation of Energy and Technology Absorption required under Section 134(3)(m) of the Companies Act, 2013 read with Rule 8 of Companies (Accounts) Rules, 2014 are not applicable to the Company, due to the very nature of the industry in which it operates. During the year under review, there were no foreign exchange earnings (Previous Year Nil) and outgo (Previous Year Nil). 21. Declaration from Independent Director The Company has received necessary declaration from the Independent Director under Section 149(7) of the Companies Act, 2013 that the Independent Director meets the criteria of Independence laid down in Section 149(6) of the Act. 22. Internal Audit Framework The Company has in place a robust internal audit framework to monitor the efficacy of internal controls with the purpose of providing to the Board of Directors, an independent, objective and reasonable assurance on the adequacy and effectiveness of the organization s risk management, control and governance processes. The framework is commensurate with the nature of the business and the size of its operations. Internal auditing, of the Company, involves the utilization of a systematic methodology for analyzing business processes or organizational problems and recommending solutions to add value and improve the processes. The audit approach

5 verifies compliance with the regulatory, operational and system related procedures and controls. During the year, M/s. Suresh Surana & Associates were reappointed as the Internal Auditors by the Board of Directors of the Company. The audit scope and plans of internal audit are approved by the Board every year. The Internal Audit Process followed by the Company is as follows: Establish and communicate the scope and objectives of audit to the management Develop an understanding of the business area under review. Identify control procedures used to ensure each key transaction type is properly controlled and monitored. Develop and execute a riskbased sampling and testing approach to determine whether the key controls are operating as intended. Key audit findings and recommendations made by the auditors are reported to the Board of Directors of the Company Monitor the implementation of audit recommendations and ensure periodic reporting to the Board of Directors of the Company The audit findings are used as a key input in the risk management process and all the key risks of the Company are mapped to the audit processes to ensure a risk based audit approach. The internal audit activity is monitored on an ongoing basis 23. Particulars of Employees There are no employees fulfilling the criteria as set out under the provisions of Section 197(12) of the Act read with Rule 5(2) and 5(3) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, Vigil Mechanism / Whistle Blower Policy The Company has implemented a whistle blower policy / vigil mechanism for Directors / Employees and every employee has the right to report to the Value Standards Committee (VSC), genuine concerns or grievances about unprofessional conduct, malpractices, wrongful conduct, fraud, violation of the Company s policies & values, violation of law without any fear of reprisal. The Company Secretary of the Company acts as the Secretary to the Values Standard Committee. On a quarterly basis, an update on the issues reported under this policy is placed to the Board of Directors, for its review and perusal. 25. Policy for Prevention of Sexual Harassment at Workplace: The Company has implemented an AntiSexual Harassment Policy in line with the requirements of the Sexual Harassment of Woman at the Workplace (Prevention, Prohibition & Redressal) Act, An Internal Complaints Committee (ICC) presided by a senior level

6 woman employee has been set up to redress complaints received on sexual harassment. All employees (permanent, contractual, temporary, trainees) are covered under this policy. During the year, no complaints on sexual harassment were received by the Company. No. of complaints received : None No. of complaints disposed off : Not Applicable 26. Directors Responsibility Statement Pursuant to Section 134(5) of the Companies Act, 2013 ( the Act ), your Directors confirm that, to the best of their knowledge and belief: a. in the preparation of the annual accounts, the applicable standards have been followed along with proper explanation relating to material departures, if any; b. appropriate accounting policies have been selected and applied consistently and such judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company as at March 31, 2015 and of the profit of the Company for the year ended on that date; c. proper and sufficient care has been taken for the maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities; d. the attached Statement of Accounts for the period ended March 31, 2015 have been prepared on a going concern basis ; e. proper systems are in place to ensure compliance of all laws applicable to the Company; and f. all related party transactions are disclosed in notes to accounts at Schedule 27 in terms of Accounting Standard Extract of Annual Return The details forming part of the extract of the Annual Return in Form MGT 9 is annexed herewith as Annexure. 28. Auditors and Auditors Report During the year, M/s S V Ghatalia & Associates LLP, Chartered Accountants (Registration No W) have tendered their resignation dated March 4, Basis this, the Board of Directors, have appointed M/s. S. R. Batliboi & Co. LLP, Chartered Accountants, Mumbai (Registration No E) as the Statutory Auditors of the Company to fill the casual vacancy caused due to resignation of the M/s S V Ghatalia & Associates LLP, Chartered Accountants. The members at the Extraordinary General Meeting dated March 9, 2015 have provided their approval for the appointment of M/s. S. R. Batliboi & Co. LLP as the Statutory Auditors.

7 M/s. S.R. Batliboi & Co. LLP, Chartered Accountants, Mumbai, (Registration No E), holds office as the Statutory Auditors of the Company upto the conclusion of the ensuing Annual General Meeting and have offered themselves for reappointment. A certificate from them has been received to the effect that their reappointment as Statutory Auditors of the Company, if made, would be within the limits prescribed under Section 139 of the Companies Act, The Auditors have subjected themselves for the peer review process of the Institute of Chartered Accountants of India (ICAI) and they hold a valid certificate issued by the Peer Review Board of ICAI. Further, it is proposed to reappoint M/s S.R. Batliboi & Co. LLP, Chartered Accountants, Mumbai, (Registration No E) as the Statutory Auditors of the Company for a period of 5 years from the conclusion of the ensuing Annual General meeting to the conclusion of the 16 th Annual General Meeting of the Company. The observations, if any, made by the Auditors of the Company in their report read with relevant notes to the Accounts are selfexplanatory and therefore do not call for any further comments. 29. Secretarial Audit Report The Secretarial Audit Report as submitted by M/s BNP & Associates, Practising Company Secretaries who were appointed as the Secretarial Auditors of the Company by the Board is annexed to this report as Annexure. There are no qualifications, reservations or adverse remarks or any disclaimer that have been made by the Secretarial Auditor. 30. Appreciation Your Directors wish to place their sincere appreciation for the valuable advice, guidance and support provided by the regulators and statutory authorities from time to time. Your Directors express their gratitude to the clients, bankers and all business associates for their continuous support and patronage to the Company. Your Directors take this opportunity to recognize and place on record their deep sense of appreciation for the exemplary commitment and contribution made by employees at all levels. Your involvement as Shareholders is greatly valued. Your Directors look forward to your continuing support. For and on behalf of the Board Sd/ Sd/ Date : May 04, 2015 Gopi Krishna Tulsian Sudhakar Ramasubramanian Place : Chennai Director Director

8 Form No. AOC2 (Pursuant to clause (h) of subsection (3) of section 134 of the Act and Rule 8(2) of the Companies (Accounts) Rules, 2014) Form for disclosure of particulars of contracts/arrangements entered into by the company with related parties referred to in subsection (1) of section 188 of the Companies Act, 2013 including certain arm s length transactions under third proviso thereto 1. Details of contracts or arrangements or transactions not at arm s length basis NIL All transactions entered into by the Company during the year with related parties were on arm s length basis. 2. Details of material contracts or arrangement or transactions at arm s length basis a) Name(s) of the related party and nature of relationship: Aditya Birla Money Limited, Holding Company b) Nature of contracts/arrangements/transactions: Availing and Rendering of Services [Section 188(1)(d) of Companies Act, 2013] c) Duration of the contracts / arrangements/transactions Ongoing transaction (Continuous) d) Salient terms of the contracts or arrangements or transactions including the value, if any The transaction with Aditya Birla Money Limited includes: i. Reimbursement of Cost including Rent, Electricity, Staff welfare expenses ii. Rental Advances of branches transferred from ABML iii. Interest Receivable / Payable on unsecured loans The transaction value for the financial year with ABML was Rs Crores. e) Date(s) of approval by the Board, if any The transaction is on arms length basis and in the ordinary course of business and so the approval of the Board for this purpose is not required. f) Amount paid as advances, if any Nil Sd/ Sd/ Date: May 04, 2015 Gopi Krishna Tulsian Sudhakar Ramasubramanian Place: Chennai Director Director

9 Form No. MGT9 EXTRACT OF ANNUAL RETURN AS ON THE FINANCIAL YEAR ENDED MARCH 31, 2015 [Pursuant to section 92(3) of the Companies Act, 2013 and Rule 12(1) of the Companies (Management and Administration) Rules, 2014] REGISTRATION AND OTHER DETAILS: i. CIN U51501GJ2003PLC ii. Registration Date 10TH OCTOBER 2003 iii. Name of the Company ADITYA BIRLA COMMODITIES BROKING LIMITED iv. Category / SubCategory of the Company PUBLIC LIMITED v. Address of the Registered office and contact details INDIAN RAYON COMPOUND, VERAVAL GUJARAT vi. Whether listed company No vii. Name, Address and Contact details of Registrar and Transfer Agent, if any NA PRINCIPAL BUSINESS ACTIVITIES OF THE COMPANY All the business activities contributing 10 % or more of the total turnover of the company shall be stated: Sr. No. Name and Description of main products / services NIC Code of the Product/ service 1. Commodities Broking Securities and Commodity contracts brokerage % to total turnover of the company 94% I. PARTICULARS OF HOLDING, SUBSIDIARY AND ASSOCIATE COMPANIES Sl. No. Name and Address of the Company 1. Aditya Birla Money Limited CIN/GLN Holding / Subsidiary/ Associate % if Shares held Applicable Section L65993GJ1995PLC Holding Co 100% 2(87)(ii)

10 Sl. No. SHARE HOLDING PATTERN (Equity Share Capital Breakup as percentage of Total Equity) Categorywise Shareholding Category of Shareholders A. Promoter 1. Indian No. of Shares held at the beginning of the year (As on ) Demat Physical Total % of Total Shares No. of Shares held at the end of the year (As on ) Demat Physical Total % of Total Shares % Change during the year a) Individual/ HUF b) Central Govt. c) State Govt.(s) d) Bodies Corporate e) Banks / FI f) Any Other Subtotal(A)(1): Foreign a) NRIsIndividuals b) Other Individuals c) Bodies Corporate d) Banks / FI e) Any Other Subtotal (A)(2): Total Shareholding of Promoter (A)=(A)(1)+(A)(2 ) B. Public Shareholding 1. Institutions a) Mutual Funds b) Banks / FI c) Central Govt. d) State Govt(s)

11 Sl. No. Category of Shareholders No. of Shares held at the beginning of the year (As on ) Demat Physical Total % of Total Shares No. of Shares held at the end of the year (As on ) Demat Physical Total % of Total Shares % Change during the year e) Venture Capital Funds f) Insurance Companies g) FIIs h) Foreign Venture Capital Funds i) Others (specify) Subtotal (B)(1) 2. Non Institutions a) Bodies Corporate (i) Indian (ii) Overseas b) Individuals (i) Individual shareholders holding nominal share capital upto Rs. 1 lakh (ii) Individual shareholders holding nominal share capital in excess of Rs 1 lakh c) Others(Specify) (i) Clearing Members (ii) HUF (iii) NRI (iv) Trusts (v) Subtotal (B)(2) Total Public Shareholding (B)=(B)(1)+ (B)(2) C. Shares held by Custodian for GDRs & ADRs

12 Sl. No. Category of Shareholders Grand Total (A+B+C) No. of Shares held at the beginning of the year (As on ) Demat Physical Total % of Total Shares No. of Shares held at the end of the year (As on ) Demat Physical Total % of Total Shares % Change during the year Shareholding of Promoters Sr. No Shareholder s Name Shareholding at the beginning of the year (As on ) Shareholding at the end of the year (As on ) No. of Shares % of total Shares of the compa ny %of Shares Pledged / encumber ed to total shares No. of Shares % of total Shares of the company %of Shares Pledged / encumbe red to total shares % change in shareho lding during the year 1. Aditya Birla Money Limited % N.A % N.A. Total % N.A % N.A. N.A. Change in Promoters Shareholding Shareholding at the beginning of the year (As on ) No. of shares % of total shares of the company Cumulative Shareholding during the year (As on ) No. of shares % of total shares of the company At the beginning of the year % Allotment on January 28, 2015 on rights basis % % At the End of the year % Shareholding Pattern of top ten Shareholders (other than Directors, Promoters and Holders of GDRs and ADRs): Not Applicable

13 Shareholding of Directors and Key Managerial Personnel: Sl. No For Each of the Directors and KMP At the beginning of the year Increase / Decrease in shareholding during the year At the end of the year Shareholding at the beginning of the year No. of shares % of shares of the Company Cumulative Shareholding during the year No. of shares % of shares of the Company INDEBTEDNESS Indebtedness of the Company including interest outstanding/accrued but not due for payment Indebtedness at the beginning of the financial year i. Principal Amount ii. Interest due but not paid iii. Interest accrued but not due Total (i+ii+iii) Change in Indebtedness during the financial year Addition Reduction Net Change Indebtedness at the end of the financial year i. Principal Amount ii. Interest due but not paid iii. Interest accrued but not due Secured Loans excluding deposits 4,50,00,000 4,50,00,000 Unsecured Loans 14,00,000 14,00,000 Deposits Total Indebtedness Total (i+ii+iii) 4,64,00,000 4,64,00,000 REMUNERATION OF DIRECTORS AND KEY MANAGERIAL PERSONNEL Remuneration to Managing Director, Wholetime Directors and/or Manager Not Applicable. The Company does not have a Managing Director / Whole Time Director / a Manager.

14 Remuneration to other directors: Sl. No. Particulars of Remuneration Name of Directors Total Amount 1. Independent Directors Mr. P. Sudhir Rao Fee for attending board committee 40,000 40,000 meetings Commission Others Total (1) 40,000 40, Other NonExecutive Directors Fee for attending board committee meetings NIL Commission Others Total (2) 40,000 40,000 Total (B)=(1+2) 40,000 40,000 Remuneration to Key Managerial Personnel Other Than MD /Manager /WTD Sl. no. Particulars of Remuneration CEO Key Managerial Personnel Janani T A Company Secretary Srinivas Subudhi, Chief Financial Officer 1. Gross salary Salary as per provisions contained in 4.50 section 17(1) of the Incometax Act, 1961 Value of perquisites u/s 17(2) Incometax Act, 1961 Profits in lieu of salary under section 17(3) Incometax Act, Stock Option* 3. Sweat Equity 4. Commission 5. Others 6. Total 4.50 NOT APPLICABLE Total

15 PENALTIES / PUNISHMENT/ COMPOUNDING OF OFFENCES: Type A. Company Penalty Punishment Compounding Section of the companies Act Brief description Details of Penalty/ Punishm ent/ Compounding fees imposed Authority[RD /NCLT/Court] Appeal made. If any(give details) B. Directors Penalty Punishment Compounding C. Other Officers In Default Penalty Punishment Compounding

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